8 Best Large Cap Penny Stocks to Invest In

3. Ambev (NYSE:ABEV)

Number of Hedge Fund Holders: 19

Share Price as of February 14: $1.87

Market Cap as of February 14: $29.41 billion

Ambev (NYSE:ABEV) produces, distributes, and sells beverages like beer, soft drinks, and other alcoholic and non-alcoholic products. It operates in Brazil, Central America and the Caribbean, Latin America South, and Canada. It offers well-known beer brands like Skol, Brahma, Budweiser, and Corona, as well as soft drinks and other beverages under brands such as Guaraná Antarctica, Gatorade, and Pepsi. It distributes products through third-party distributors and a direct distribution system.

Its Brazil operations were the star of its Q3 2024 earnings, with premium beer leading the charge. This segment, which includes brands like Corona, Spaten, and Original, experienced explosive growth, with each brand’s volume surging over 20%. This translates to significant revenue gains and highlights Brazil’s increasing consumer preference for premium beers. Specifically, Corona, Spaten, and Original each saw volume growth exceeding 25%.

The premium beer segment’s strength is crucial for the company’s future growth. As Brazilian consumers continue to trade up to higher-priced options, this segment offers potential for expansion. Ambev’s (NYSE:ABEV) established brands position it well to capitalize on this trend and drive future profitability.